Fashion solutions that fit
We often hear talk of today's highly segmented consumer market, with retail pundits frequently deploying the phrase "segment of one" to describe a consumer that has become increasingly individualistic and choosy. But the term could just as easily be applied to businesses.
The rise of the internet and the gathering speed of commerce has made fast, efficient, and - most importantly - integrated systems a prerequisite for any retailer worth its salt. And with globalisation and product proliferation continuing to exert an enticing downward squeeze on prices, it's not just the big boys - the department stores and mega-chains - who are calling the shots. Small and medium sized chains are now able to demand customised or specially configured systems that can be integrated across all areas of their business.
As business systems specialist Future Business Systems' managing director Mark Silver points out "retailers no longer want to run eight different packages to operate their business".
Future Business Systems (FBS) has been providing complete computer systems for more than 25 years to the TCF industry and is one of the few companies in the market that provides a total system for retailers and wholesalers. This includes the Harmony Software system which covers all areas of software from retail to manufacturing, accounting, distribution, warehousing, e-commerce and payroll.
"We don't just provide the software, it's a total IT solution including hardware, networking, training, consulting and helpdesk," says Silver.
FBS recently enhanced Harmony's offering with the introduction of finger print recognition capability in its Harmony POS technology, currently being pioneered by menswear retailer Tarocash's recently launched offshoot Connor. The system integrates with hand held PDA (personal digital assistant) devices in store, which can be used to scan items in busy periods.
"If there are three busy staff in store but only one computer, the PDA integration allows transactions to be processed in the shortest possible time."
Another company, Syscap Retail Systems has found this kind of flexibility is also now in demand from industry executives, who spend increasing periods away from the office, signalling the death knell for larger format computers, as managing director Alaister Harris puts it.
"The notebook that was such a turn-on and status symbol 10 years ago for many has now become a detested and unwanted accessory. Whether at lunch, having a drink, going to the toilet, it has to be looked after, and it has become a source of more than just a little frustration and annoyance.
"But 'I can't go without it, I might need to know...' has been the lament of many a retail executive as they organise themselves for yet another business trip or meeting."
All that is changing, Harris claims, thanks to new 3G/Next-G communications channel and compatible mobile phones that promise an escape from the notebook millstone, providing spontaneous access to key information in the corporate database through nothing more sophisticated than a garden variety mobile.
Minder from Syscap, which numbers well-known fashion labels including Carla Zampatti and Gazman among its devotees, is one such system.
"If you have heavy duty work to do, yes, you are stuck with your notebook. If however, you need spontaneous access to information such as 'How are sales going as of now in my stores?' 'How is the promotion that kicked off this morning travelling?' 'How is today's banking shaping up at this point of the day's trading?' 'What are my top sellers so far today?'. These mobile systems provide the solution."
Meanwhile business systems provider Apparel 21 has specialised in fashion oriented software for all parts of the supply chain for more than two decades and now provides specially configured systems for a range of clients including Seafolly (mainly wholesale), Dolina Group, Calvin Klein Jeans, Lonsdale, Henry Bucks, Globe and Pensinsular Surf. One area in which the ability to provide tailored solutions has become increasingly relevant is reporting, confirms Apparel 21 general manager Luke Haites.
While most businesses generally deal in the same metrics, they tend to differ in how they want them presented and this, claims Haites, is where Apparel 21's custom configured solutions come in, recently enhanced with the development of a built in data processing capability or "data warehouse" that integrates seamlessly with the rest of the self-named Apparel 21 system.
"Essentially we're talking about a business analysis system that retrieves data and allows the client to 'slice and dice' it in different ways. For example in a chain, store A might be doing better than store B, but then the company might want to further refine the metrics to look at men's versus women's product and which category is doing better in which store," Haites says.
While there are many third party systems on the market, they are costly to purchase and require significant work to be enabled to "talk to" a company's existing system. By contrast a built-in data warehouse offers cost savings and efficiency; and Apparel 21's version has the bonus of real time data updates, he claims.
The logistics and supply chain side of the fashion industry has also seen the emergence of increasingly fashion specific solutions. Nortech Australia has developed a system that works in conjunction with freight giant Toll's fashion division In2store. Designed to integrate with hang bag freight, GoFar Vendor Connect has already garnered two sizeable Australian retailers among its devotees, distributing garments around Australia from manufacturer to store.
"The GoFar Vendor Connect system replaces Toll's software and enables suppliers and manufacturers to log in and see what's been sold so they can take what's needed into site. Merchandisers can look at the system every week and set up what goes into the stores on the website, so manufacturers can log in and see what needs to be replaced," explains Nortech Australia managing director Graham Meyerowitz.
Meanwhile retail technology specialist SVI Retail sees flexibility and integration as key watchwords for its recently launched merchandise planning system Pyramid, says sales and marketing manager David Tyc.
"Every retailer operates differently, but until recently many had to adapt their businesses to fit in with the constraints of the software, whereas now there's a common belief that it's the software that needs to be adaptable to businesses."
More and more businesses are taking advantage of the internet, ADSL (Asymmetrical Digital Subscriber Line - asymmetrical because of the differing download and upload speeds) and private network or virtual private networks. But, Tyc warns, there are qualifications to all the excitement, particularly when it comes to web-based solutions.
"The problem comes in the form of computer viruses and spyware and businesses' lack of protection from these rogue issues. It's one thing installing anti-virus and spyware programs but it's another ensuring they are regularly updated with new definitions. A fashion retailer with, say 25 outlets, has 25 more potential internet security risks than a business that only operates out of a single head office." For this reason, for any retailer considering installing ADSL or broadband connectivity into their chain Tyc recommends installing a private network.
"It's worth that little extra to ensure that retail chains are protected from internet 'nasties', as these retail sites can only be accessed via head office from the outside world, meaning that there is only one point that is a potential security risk, and with firewalls or anti virus software this risk can be minimised."
It seems the only other caution regarding the breakneck evolution of business systems is human beings' capacity to keep up, claims Syscap's Alaister Harris.
"There are clearly psychological and financial stresses that rapid change places on the incumbents, and the challenges it presents to the upcoming generation."
He says that if these caveats can be heeded, the benefits of increasingly integrated and flexible technology are self-evident, particularly from the point of view of retail.
"Retailers will continue the trend towards making shopping in their establishment as pleasant an experience as possible, and they will continue in their efforts to turn first time customers into long-term relationship based customers. Clearly user friendly, efficient technologies will play a crucial part in this."